- Anxiety Strikes $8 Trillion Mortgage Debt Market After SVB Collapse “So-called agency mortgage bonds are widely held by banks, insurers and bond funds because they are backed by the mortgage loans from government-owned lenders Fannie Mae and Freddie Mac. The bonds are far less likely to default than most debt and are easy to buy and sell quickly, a crucial reason they were Silicon Valley Bank’s biggest investment before it foundered. But agency mortgage-backed securities, like all long-term bonds, are vulnerable to rising interest rates, which pushed their prices down last year and saddled banks such as SVB with unrealized losses.” (The Wall Street Journal)
- Here’s Why New York Community Didn’t Take on Signature’s Real Estate Loans “New York Community Bancorp's highly touted acquisition of Signature Bank does not include at least one giant piece of Signature's portfolio: its $50 billion in commercial real estate and multifamily loans.” (Crain’s New York Business)
- Signature Acquired, But What Happens to Remaining Loans? “New York commercial real estate industry participants are taking a closer look at Signature Bank’s loan portfolio after the news broke that New York Community Bank (NYCB) had agreed to purchase a large share of Signature Bank’s assets at a major discount a week after a Federal Deposit Insurance Corporation (FDIC) takeover. Long Island-based NYCB via its subsidiary, Flagstar Bank, announced Monday it was acquiring a big chunk of Signature Bank’s assets in a $2.7 billion deal.” (Commercial Observer)
- Small Banks Struggles Could Hit the Real Estate Market Hard “A pullback in lending among small banks in the U.S. was already underway before the collapse of Silicon Valley Bank and Signature Bank. Now economists expect to see more tightening. Why it matters: Stricter lending standards among smaller banks is likely to slow economic growth overall. But the commercial real estate sector, already battered by rising interest rates and half-empty office buildings, is particularly at risk.” (Axios)
- Industrial Outdoor Storage Could Be a Siren Song, and the Inexperienced Should Beware “Massive growth in the industrial outdoor storage sector, and billions of dollars in investment, has attracted unseasoned buyers to the market.” (Bisnow)
- Foot Locker to Close 400 Mall Stores as It Shifts Focus to Niche Shops for Snickerheads, Kids and Higher-Income Shoppers “Foot Locker said it will close more than 400 stores in shopping malls, part of a new business plan meant to "reset" the company. Executives for the sneaker retail chain unveiled closure plan at a Monday investor day in New York City. Foot Locker's "Lace Up" business plan also includes opening free-standing stores for niche audiences. The plan seemingly left Wall Street unconvinced. Foot Locker shares were down more than 5% for the day despite the stock market trending slightly upward.” (The Insider)
- Kathy Hochul’s Plan to Force NYC Suburbs to Approve More Housing Sparks Battle “Backhoes are finally clearing the earth for the development of Matinecock Court, an affordable-housing complex in this Long Island suburb that was first proposed 45 years ago. To housing advocates, a multifamily project first floated when Jimmy Carter was president is the ultimate example of unreasonably restrictive suburban zoning and the reason for a push by Democratic Gov. Kathy Hochul to change the rules. To Long Island officials, who have long been concerned about traffic and school crowding, Matinecock Court was a challenge to the inviolate need for local control over land-use decisions.” (The Wall Street Journal)
- What’s It Like to Live in a Grocery Store? Surprisingly Comfortable “The building, which had a retail space on the ground floor and a three-bedroom apartment above with a separate entrance, had most recently been used as an outreach ministry for a church. But by the time Mr. Raven and Ms. Galore saw it in 2015, the ground floor had been empty for years and the upstairs was barely habitable. Outside, the building’s red bricks were beginning to fall out, as the mortar turned to dust. Inside, there were beaten-up walk-in coolers and leftover commercial sinks.” (The New York Times)
- Soho, Union Square Retail Emerge from COVID at Different Speeds “Two tony Manhattan shopping destinations entered a public health emergency and financial catastrophe. One came out swinging, the other emerged punch drunk. Union Square and SoHo have indeed ended up on divergent paths in terms of the recovery of their retail from the pandemic. SoHo, after a rough 2020 characterized by broken storefronts due to rioting, seems to be back if not better than ever, attracting dozens of new tenants and thousands of shoppers daily. Union Square, on the other hand, has slipped a bit from its former perch as a Manhattan retail mecca.” (Commercial Observer)
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